NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2025 FINANCIAL PERFORMANCE 238 33. FINANCIAL INSTRUMENTS (CONT’D) 33.2 Financial risk management objectives and policies (cont’d) Financial risk (cont’d) The main areas of financial risks faced by the Group and the Company and the policy in respect of the major areas of treasury activity are set out as follows (cont’d):- (a) Credit risk (cont’d) Following are the areas where the Group and the Company are exposed to credit risk (cont’d):- Trade receivables (cont’d) Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix which are grouped together as they are expected to have similar risk nature (cont’d):- Gross-carrying Loss- amount allowance Net balances Group RM’000 RM’000 RM’000 2024 Current (Not past due) 2,549 - 2,549 1-30 days past due 633 - 633 31-60 days past due 243 - 243 61-90 days past due 130 - 130 More than 90 days past due 98 (19) 79 3,653 (19) 3,634 Other receivables The maximum exposure to credit risk is represented by their carrying amounts in the statements of financial position. Cash and cash equivalents The credit risk for cash and cash equivalents are considered negligible, since the counter parties are reputable banks with high quality external credit ratings. Intercompany loans and advances The maximum exposure to credit risk is represented by their carrying amounts in the statements of financial position. The Company provides unsecured advances to subsidiaries and monitors the results of the subsidiaries regularly. As at the end of the reporting date, there was no indication that advances to the subsidiaries are not recoverable.
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